SEZ Update: Flexible hybrid work model enabled for employees of IT-ITeS units in SEZ till December 2023

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SEZ Update: Flexible hybrid work model enabled for employees of IT-ITeS units in SEZ till December 2023

Tejasvi

@tejasvi

December 14, 2022

Public Policy

591

The much-awaited Notification enabling a flexible hybrid work model to be adopted by the IT-ITES units in SEZ has been issued by the Ministry of Commerce and Industry. NASSCOM has been pursuing this matter for over 2 years now and we are extremely glad to see it culminate into such a positive outcome.

The notification enables a flexible hybrid work model to be adopted by IT-ITES units in the SEZs based on their requirements for the next one year. This is expected to allow the hybrid model to evolve without strict mandates from the Government. Under the revised notification, for the next one year - there is no restriction on how many employees can WFH, there is no requirement to submit list of employees and there is no requirement to seek approval for implementing WFH. The new notification addresses two key concerns of the industry, namely, difficulty in getting approvals for more than 50% of the employees to work remotely and different interpretations as the compliance obligations by local authorities in different SEZs.

Summary of the notification is as follows:

A Unit can allow its employees to work from home or from any place outside the SEZ till December 31, 2023, subject to the condition that the unit continues to operate from the premises as per their Letter of Approval.
The unit is required to intimate the Development Commissioner (DC) of the SEZ by email before availing work from home. For units already permitting work from home, units need to intimate the DC before January 31, 2023.
A list of employees working from home should be maintained by the unit and should be submitted to the DC only when requested
The Unit must ensure that export revenue of the resultant products/ services is accounted for by the unit to which the employee is tagged.
Where an employee ceases to be a part of the project of the Unit, the employee shall be un-tagged from the unit and the unit will surrender the identity card as per Rule 70(2) of SEZ Rules.
The Unit may provide duty-free goods (like laptop, desktop, or other electronic equipment needed) to an employee. The same will be allowed to be taken out of SEZ (on a temporary basis) without payment of duty or integrated GST.
The temporary removal of such duty-free goods will be allowed for a period commensurate with the validity of the facility for work from home, beyond which the applicable duty will need to be paid by the unit.

Copy of the notification is attached for your reference. In case you have any feedback, please write to tejasvi@nasscom.in and garima@nasscom.in

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